MGV The way forward looks exciting

Musgrave Minerals has described the Lena/Break of Day discoveries as analogous to Doray Minerals' Andy Wells discovery. Doray decided to mine the deposit on an JORC resource of 124,000 ozs. Some six and a half years since the initial discovery the resource is closer to a million ozs.

That seems to be what happens with discoveries in the Murchison like Andy Wells. You can often start out with an acceptable level of resource and then find more as you go along replacing what you produce.

Break of Day has only been drilled to 250 metres but RW believes the shallower results so far mirror what Doray found at the same levels at Andy Wells. Andy Wells found more gold lodes down to 800 metres and beyond, BoD's velvet and twilight lodes are currently open at depth but remain untested beyond 250 metres.

Lena and Break of Day will have their first resource update by the end of June, no earlier. Not clear to me if that will be based on inferred resources or indicated and measured resources indicating greater certainty. Given the way in which Musgrave has gone about its drilling at Lena/BoD i suspect they will want to firm up a number more certain than an inferred resource but we shall see.

The end June date takes into account the company's need to evaluate the results of the current drilling. Once those results of the current Phase 2 drilling are known - and the first results will be at hand sometime next week - the company will begin a scoping study which will likely include a further drilling component.

It was nice to see how much money the company had at the end of March some $2.3 million. They will spend more this quarter with the 6000 metre Phase 2 drilling and with some initial 2,000 metres of drilling on those copper/zinc targets in the north of the project area. Just when the company will need to raise capital is not clear but it can't be too far way. You want to have a top up well before you run out altogether.

Musgrave still seems to fly under the market's radar unlike a number of its peers in a similar stage of development and that probably suits RW. Never one to promise what he can't deliver. Not sure when we patient holders will be rewarded but hopefully it won't be too long!!!